5 Huge Analyst Calls: Adobe, Marvell Boosted on AI Hopes; Urban Outfitters slashed
Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week: upgrades for Hexcel, Callon Petroleum, Adobe, and Marvell, and a downgrade for Urban Outfitters.
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What happened? On Monday, Citi downgraded Urban Outfitters (NASDAQ:URBN) to Neutral with a $40 price target.
What’s the full story? Citi downgrades URBN citing high market expectations and slow turnaround of its eponymous UO brand. The analyst expects a material Q2 EPS beat and above-consensus Q3 guidance, and buffers that bullish implication with some caution when noting the stock has limited upside beyond Citi’s $40 price target. The analyst also highlights recession risks, margin pressures, and balance sheet leverage as potential challenges for URBN.
Neutral at Citi is defined as follows: “Any covered stock not assigned a Buy or a Sell is a Neutral.”
How did the stock react? Shares of URBN slid 2.5% on the headline during premarket trading, dropping nearly $1 from $36.41 to $35.50. URBN opened the regular session at $36.07 and closed at $36.39, down 0.05% from the prior close.
What happened? Early morning on Tuesday, RBC Capital upgraded Hexcel Corp (NYSE:HXL) to Outperform with an $85 price target.
What’s the full story? According to RBC Capital, HXL stock has lost some 8% since reporting its Q2 results. Over the same period, the entire aerospace & defense sector sector retreated about 1%.
The analyst believes HXL is a high-quality aerospace stock with underappreciated upside potential to its free cash flow (FCF). While RBC Capital expects aerospace growth to be just mid-single digits in the second half of the year after a strong Q1
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